SubsidiaryMay 12, 2026, 08:59 AM
Data Storage Corp Forms AI Continuity Subsidiary SaiS
AI Summary
Data Storage Corp (DTST) announced the formation of Sovereign AI Solutions (SaiS), a new wholly-owned subsidiary. SaiS will develop an AI Continuity Control Plane for regulated industries such as healthcare, financial services, and insurance, focusing on recovery, validation, and compliance for sovereign AI and AI Factory environments. This strategic pivot follows the $40 million sale of its cloud solutions business and a $29.3 million share repurchase, leaving DTST debt-free with substantial working capital and approximately 2.17 million shares outstanding. The company aims to capitalize on a critical, high-margin market gap.
Key Highlights
- Formed Sovereign AI Solutions (SaiS), a new wholly-owned subsidiary.
- SaiS will develop an AI Continuity Control Plane for regulated industries.
- Completed $40 million sale of cloud solutions business in fiscal year 2025.
- Repurchased $29.3 million of common stock, reducing shares by ~72%.
- Outstanding shares reduced to approximately 2.17 million.
- Company is debt-free with substantial working capital.
- Targets a multi-billion dollar market with high-margin, recurring revenue.
- Nexxis Inc. provides a stable revenue base for continuing operations.